Moving on to other topics

A lot of write offs have occurred since my last post

Some lessons that could be learnt from the subprime crisis -

• Ways to generate wealth must be sustainable. It is not sustainable to for an industry to "sell lemons to each other indefinitely" as some have described it.
• By slicing and mincing risk and passing it all around, the overall risk does not go down.
• Models for risk must seriously take liquidity into account. What is a bond worth if no one wants to buy it?
• Risk (i.e. loans) should not be created by parties that have no stake in what happens subsequently.